Wuxi Little Swan Company Limited Third Quarter Report 2017
WUXI LITTLE SWAN COMPANY LIMITED
THIRD QUARTER REPORT 2017
October 2017
Wuxi Little Swan Company Limited Third Quarter Report 2017
Part I Important Statements
The board of directors (the “Board”), the supervisory board (the “Supervisory Board”) as
well as the directors, supervisors and senior management of Wuxi Little Swan Company
Limited (the “Company”) hereby guarantee the factuality, accuracy and completeness of the
contents of this Report, and shall be jointly and severally liable for any false representation,
misleading statements or material omissions in this Report.
All the directors of the Company attended the board meeting for the review of this Report.
Fang Hongbo, chairman of the board, Sun Yunan, CFO, and Xu Yunwei, head of the
accounting department (head of accounting) of the Company, hereby guarantee that the
financial statements carried in this Report are factual, accurate and complete.
This Report has been prepared in both Chinese and English. Should there be any
discrepancies or misunderstandings between the two versions, the Chinese version shall
prevail.
Wuxi Little Swan Company Limited Third Quarter Report 2017
Part II Company Fundamentals
I Key Consolidated Operating Results
Indicate by tick mark whether the Company needs to retrospectively restate any of its accounting data.
□ Yes √ No
September 30, 2017 December 31, 2016 Change
Total assets (RMB) 18,586,002,157.24 18,885,986,837.64 -1.59%
Equity attributable to owners of the parent
6,672,700,988.22 5,983,847,862.72 11.51%
(RMB)
July-September 2017 YoY change January-September 2017 YoY change
Net sales (RMB) 5,409,053,680.82 32.87% 15,977,114,535.05 32.53%
Net margin attributable to shareholders of
411,479,306.87 23.83% 1,143,019,809.34 25.18%
the Company (RMB)
Net margin attributable to shareholders of
the Company before exceptional gains 399,291,895.16 22.38% 1,114,089,109.91 24.66%
and losses (RMB)
Net cash from operating activities (RMB) -- -- 689,222,217.42 -64.24%
Basic earnings per share (RMB/share) 0.65 22.64% 1.81 25.69%
Diluted earnings per share (RMB/share) 0.65 22.64% 1.81 25.69%
Weighted average return on equity (%) 6.39% 0.40% 17.94% 1.13%
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item January-September 2017 Note
Gains/Losses on disposal of non-current assets (inclusive of offset asset impairment
2,323,694.16
provisions)
Governmental subsidy recorded into current gains/losses (exclusive of governmental
subsidy closely relevant to business events, and quantified according to national unified 12,591,448.99
standards)
Gains/Losses on debt restructuring 2,572,954.74
Gains/Losses on fair value changes of trading financial assets and liabilities &
investment income from disposal of trading financial assets and liabilities as well as
14,175,311.33
financial assets available for sale (exclusive of effective hedges related to normal
business operations of the Company)
Wuxi Little Swan Company Limited Third Quarter Report 2017
Non-operating income and expense other than above 3,353,217.21
Less: Income tax effects 4,681,159.25
Minority interests effects (after tax) 1,404,767.75
Total 28,930,699.43 --
Explanation of why the Company classified an item as an exceptional gain/loss according to the definition in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gains and Losses, or reclassified any exceptional gain/loss item given as an example in the
said explanatory announcement as a recurrent gain/loss:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
II Total Number of Shareholders and Shareholdings of Top 10 Shareholders at Period-End
1. Numbers of Common Shareholders and Preference Shareholders with Resumed Voting Rights, and
Shareholdings of Top 10 Shareholders
Unit: share
Total number of common shareholders Total number of preference shareholders with resumed
16,635
at period-end voting rights at period-end (if any)
Top 10 shareholders
Total shares Restricted Pledged or frozen
Shareholding
Name of shareholder Nature of shareholder held at shares held at shares
percentage
period-end period-end Status Number
Domestic
MIDEA GROUP CO., LTD. non-state-owned 37.78% 238,948,117
corporation
TITONI INVESTMENTS
Foreign corporation 14.89% 94,204,942
DEVELOPMENT LTD.
GAOLING FUND,L.P. Foreign corporation 3.74% 23,664,125
Domestic
NATIONAL SOCIAL SECURITY
non-state-owned 3.34% 21,097,464
FUND PORTFOLIO 108
corporation
GREENWOODS CHINA ALPHA
Foreign corporation 2.81% 17,787,068
MASTER FUND
State-owned
FINANCE BUREAU OF WUXI 2.70% 17,054,071
corporation
Domestic
NATIONAL SOCIAL SECURITY
non-state-owned 2.17% 13,709,256
FUND PORTFOLIO 101
corporation
Wuxi Little Swan Company Limited Third Quarter Report 2017
CENTRAL HUIJIN ASSET State-owned
1.61% 10,156,300
MANAGEMENT CO., LTD corporation
HONGKONG SECURITIES
Foreign corporation 1.55% 9,818,148
CLEANING CO., LTD
ICBC－HUITIANFU GROWING Domestic
FOCUS HYBRIDSECURITIES non-state-owned 1.28% 8,091,762
INVESTMENT FUND corporation
Top 10 non-restricted shareholders
Non-restricted Type of stock
Name of shareholder shares held at
Type Number
period-end
MIDEA GROUP CO., LTD. 238,948,117 RMB common stock 238,948,117
Domestically listed stock
TITONI INVESTMENTS DEVELOPMENT LTD. 94,204,942 94,204,942
for foreign investors
Domestically listed stock
GAOLING FUND,L.P. 23,664,125 23,664,125
for foreign investors
NATIONAL SOCIAL SECURITY FUND PORTFOLIO 108 21,097,464 RMB common stock 21,097,464
Domestically listed stock
GREENWOODS CHINA ALPHA MASTER FUND 17,787,068 17,787,068
for foreign investors
FINANCE BUREAU OF WUXI 17,054,071 RMB common stock 17,054,071
NATIONAL SOCIAL SECURITY FUND PORTFOLIO 101 13,709,256 RMB common stock 13,709,256
CENTRAL HUIJIN ASSET MANAGEMENT CO., LTD 10,156,300 RMB common stock 10,156,300
HONGKONG SECURITIES CLEANING CO., LTD 9,818,148 RMB common stock 9,818,148
ICBC－HUITIANFU GROWING FOCUS
8,091,762 RMB common stock 8,091,762
HYBRIDSECURITIES INVESTMENT FUND
MIDEA GROUP CO., LTD. and TITONI INVESTMENTS
Related or acting-in-concert parties among shareholders above
DEVELOPMENT LTD are parties acting in concert.
Top 10 common shareholders conducting securities margin
Not applicable
trading (if any)
Indicate by tick mark whether any of the top 10 common shareholders or the top 10 non-restricted common
shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yea √ No
No such cases in the Reporting Period.
2. Total Number of Preference Shareholders and Shareholdings of Top 10 of Them at Period-End
□ Applicable √ Not applicable
Wuxi Little Swan Company Limited Third Quarter Report 2017
Part III Significant Events
I Changes in Key Consolidated Financial Statement Items and Reasons for Such Changes
Unit: RMB’0,000
September December 31, Change
Item Change Main reason for change
30, 2017 2016 (%)
Notes receivable 63,996.89 129,760.92 -65,764.03 -51% Certain such notes became due
Prepayments 19,751.15 13,151.38 6,599.77 50% Increased prepayments for raw materials
Interest receivable 4,269.24 2,675.58 1,593.66 60% Increase in interest receivable on structured deposits
Other accounts Decrease in temporary payments made for
1,333.45 2,369.39 -1,035.94 -44%
receivable non-operating purposes
Long-term deferred
1,040.98 438.77 602.21 137% Higher mold-related expenditure
expense
Other non-current assets 4,005.78 2,565.58 1,440.20 56% Increased prepayments for equipment and molds
Advances received 108,164.49 301,434.78 -193,270.29 -64% Due to sales cycles
January-Sept January-Septe Change
Item Change Main reason for change
ember 2017 mber 2016 (%)
Net sales 1,597,711.45 1,205,563.59 392,147.86 33% Increased unit sales
Cost of sales 1,188,708.48 882,946.80 305,761.68 35% Increased sales
Taxes and surtaxes 9,844.66 6,236.07 3,608.59 58% Increased turnover tax
Higher expenditure on employees’ compensation and
Administrative expense 48,004.06 36,704.25 11,299.81 31%
R&D
Greater foreign exchange losses caused by RMB
Finance costs -2,633.59 -9,401.67 6,768.08 -72%
appreciation
Investment income 23,858.99 13,075.82 10,783.17 82% Higher income from bank wealth management products
Net cash flows from Increases in cash paid for goods and services, as well as
68,922.22 192,729.41 -123,807.19 -64%
operating activities in cash paid to and for employees
Net cash flows from Increase in cash yielded by bank wealth management
-145,498.58 -238,299.15 92,800.57 39%
investing activities products
Net cash flows from
-53,385.95 -37,600.18 -15,785.77 -42% Increase in dividends paid
financing activities
Wuxi Little Swan Company Limited Third Quarter Report 2017
II Progress, Influence and Solutions Associated with Significant Events
□ Applicable √ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties and
Acquirers, as well as the Company and Other Commitment Makers, Failed to Fulfill on Time
during Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Forecast of 2017 Annual Operating Results
Warning of a possible loss on or a significant year-over-year change in accumulative net margin during the period
the beginning of the current year through the end of the next reporting period, as well as the reasons:
□ Applicable √ Not applicable
V Securities Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI Investments in Derivative Financial Instruments
Unit: RMB’0,000
Proportion
of closing Actual
Purchas Sold in Impai
Relate Initial Opening Closing investmen gain/los
Relationsh ed in the the rment
d Type of investme Startin Endin investm investme t amount s in the
Operator ip with the Reporti Reporti provis
transac derivative nt g date g date ent nt in the Reporti
Company ng ng ion (if
tion amount amount amount Company’ ng
Period Period any)
s closing Period
net assets
Forward
Not 04/24/ 09/13/
Bank Not forex 0 0 133,580 97,776 0 35,804 5.37% 1,418
related 2017 2018
contract
Total 0 -- -- 0 133,580 97,776 0 35,804 5.37% 1,418
Capital source for derivative investment All from the Company’s own funds
Lawsuits involved (if applicable) N/A
Disclosure date of board announcement 03/09/2017
Wuxi Little Swan Company Limited Third Quarter Report 2017
approving derivative investment (if any)
Disclosure date of shareholders’
meeting announcement approving 04/11/2017
derivative investment (if any)
The Company has considered and formulated the Management Methods for Forex Trading
Business to implement full assessment and control on its derivative investments, with
highlights as follows:
1. About market risk: Exchange rate fluctuations may cause great risk to the Company’s
forex trading business. For instance, failure of capital required to arrive in time for
performance in forex trading could result in loss and default.
Control measures: Speculative trading is not allowed and a prudent and steady principle is
adopted. A hierarchical management mechanism has been implemented, whereby the
operating unit which has submitted applications for funds business should conduct a risk
analysis on the conditions and environment that could affect the operating profit and loss,
evaluate the possible greatest revenue and loss, and report the greatest acceptable margin
ratio or total margin amount, so that the Company can update the operating status of the
funds business on a timely basis thus ensuring the arrangement of proper funds before
Analysis of risks and control measures
expiry dates.
associated with derivative investments
2. About operational risk: Risks caused by imperfect internal processes, staff, systems and
held in the Reporting Period (including
external issues may cause the Company to incur losses during the course of its forex
but not limited to market risk, liquidity
trading business.
risk, credit risk, operational risk, legal
Control measures: The Company has not only developed relevant management systems
risk, etc.)
that clearly define the assignment of responsibility and approval process for forex trading,
but has also established a well-developed monitoring mechanism, aimed at effectively
reducing operational risk by strengthening its risk control over the business,
decision-making and trading processes.
3. About legal risk: The Company's forex trading business is conducted in compliance
with laws and regulations, with clearly defined responsibilities and obligations between
the Company and agencies.
Control measures: The Company has designated relevant departments with the
responsibility for enhancing expertise in laws, regulations and market rules, conducting
strict examination and verification of contracts, defining responsibility and obligations,
and strengthening compliance checks, so as to ensure that the Company's derivatives
investment and position operations meet the requirements of the laws and regulations and
internal management system of the Company.
Changes in market prices or fair value
of derivative investments during the
Reporting Period (fair value analysis Forward forex quotations announced by the Bank of China are used in the fair value
should include measurement method analysis of the Company’s derivative investments.
and related assumptions and
parameters)
Significant changes in accounting No significant changes
Wuxi Little Swan Company Limited Third Quarter Report 2017
policies and specific accounting
principles adopted for derivative
investments in the Reporting Period
compared to previous reporting period
The independent directors of the Company are of the opinion that the Company has
formulated the Management Methods for Forex Trading Business to, which enables the
Company to effectively control risks associated with derivative investment; that for the
Reporting Period, derivative investment was conducted mainly on the Company’s export
Opinion of independent directors on
business by signing forward forex contracts with domestic financial institutions to lock in
derivative investments and risk control
exchange rates and avoid risk caused by exchange rate fluctuations; that no speculative
trading is allowed, leading to no risk of non-performance; and that trading deadlines are
all set according to the Company’s expected payments and collections of payments, with
no impact on the Company’s liquidity.
VII Visits Paid to the Company for Purposes of Research, Communication, Interview, etc.
during Reporting Period
Date of visit Way of visit Type of visitor About
Sheet of Investor Relations Activities on July 4, 2017
07/04/2017 By one-on-one meeting Institution
(No. 2017-03) on www.cninfo.com.cn
08/07/2017 Sheet of Investor Relations Activities on August 7-10,
By one-on-one meeting Institution
-08/10/2017 2017 (No. 2017-04) on www.cninfo.com.cn
Sheet of Investor Relations Activities on August 23,
08/23/2017 By one-on-one meeting Institution
2017 (No. 2017-05) on www.cninfo.com.cn
VIII Irregularities Arising from Provision of Guarantees for Third Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s Funds by Its Controlling Shareholder or Related Parties for
Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Targeted Measures Taken to Help People Lift Themselves out of Poverty
□ Applicable √ Not applicable
Wuxi Little Swan Company Limited Third Quarter Report 2017
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Unit: RMB
Item September 30, 2017 December 31, 2016
Current assets:
Monetary funds 3,104,235,150.95 4,272,077,211.11
Settlement reserve
Interbank lendings
Financial assets at fair value through gains/losses 7,279,041.33
Derivative financial assets
Notes receivable 639,968,894.57 1,297,609,202.29
Accounts receivable 1,600,541,720.56 1,465,654,497.90
Prepayments 197,511,513.27 131,513,792.18
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract reserve
Interest receivable 42,692,360.90 26,755,807.07
Dividends receivable
Other accounts receivable 13,334,545.48 23,693,886.54
Financial assets purchased under agreements to resell
Inventories 1,414,074,811.50 1,724,837,944.69
Assets held for sale
Non-current assets due within one year
Other current assets 9,880,082,620.77 8,385,724,282.16
Total current assets 16,899,720,659.33 17,327,866,623.94
Non-current assets:
Loans and advances to customers
Available-for-sale financial assets 200,000.00 200,000.00
Held-to-maturity investments
Long-term accounts receivable
Wuxi Little Swan Company Limited Third Quarter Report 2017
Long-term equity investments
Investment property 61,965,822.25 64,854,903.25
Fixed assets 1,006,798,867.34 970,859,291.03
Construction in progress 14,733,569.06
Engineering materials
Disposal of fixed assets
Productive living assets
Oil-gas assets
Intangible assets 188,354,882.02 192,283,486.15
R&D expense
Goodwill
Long-term deferred expense 10,409,765.85 4,387,728.14
Deferred income tax assets 363,760,831.94 299,879,029.23
Other non-current assets 40,057,759.45 25,655,775.90
Total non-current assets 1,686,281,497.91 1,558,120,213.70
Total assets 18,586,002,157.24 18,885,986,837.64
Current liabilities:
Short-term borrowings 149,470,000.00 183,813,064.12
Borrowings from Central Bank
Money deposits accepted and inter-bank deposits
Interbank borrowings
Financial liabilities at fair value through gains/losses
Derivative financial liabilities
Notes payable 2,629,320,974.93 2,620,549,815.47
Accounts payable 3,733,802,682.63 3,335,089,672.06
Advances received 1,081,644,947.93 3,014,347,762.24
Financial assets sold for repurchase
Fees and commissions payable
Payroll payable 257,433,831.48 288,592,163.29
Taxes payable 405,748,686.13 412,238,029.96
Interest payable
Dividends payable 6,996,784.06 7,150,684.06
Other accounts payable 219,230,536.72 199,926,402.04
Reinsurance premiums payable
Wuxi Little Swan Company Limited Third Quarter Report 2017
Insurance contract reserve
Payables for acting trading of securities
Payables for acting underwriting of securities
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities 2,274,382,191.77 1,844,413,154.26
Total current liabilities 10,758,030,635.65 11,906,120,747.50
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term accounts payable
Long-term payroll payable 13,104,735.62 16,101,348.60
Special payables
Provisions 1,524,217.08 1,727,340.89
Deferred income 2,602,433.22 2,942,333.25
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 17,231,385.92 20,771,022.74
Total liabilities 10,775,262,021.57 11,926,891,770.24
Owners’ equity:
Share capital 632,487,764.00 632,487,764.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserve 1,230,146,749.94 1,191,490,133.01
Less: Treasury shares
Other comprehensive income 52,300,046.81 70,757,524.61
Special reserve
Surplus reserve 332,594,722.29 332,594,722.29
Provisions for general risks
Retained earnings 4,425,171,705.18 3,756,517,718.81
Equity attributable to owners of the parent 6,672,700,988.22 5,983,847,862.72
Wuxi Little Swan Company Limited Third Quarter Report 2017
Minority interests 1,138,039,147.45 975,247,204.68
Total owners’ equity 7,810,740,135.67 6,959,095,067.40
Total liabilities and owners’ equity 18,586,002,157.24 18,885,986,837.64
2. Parent Company Balance Sheet
Unit: RMB
Item September 30, 2017 December 31, 2016
Current assets:
Monetary funds 1,471,360,289.53 2,397,428,457.92
Financial assets at fair value through gains/losses 6,482,343.61
Derivative financial assets
Notes receivable 451,178,277.23 1,088,559,252.21
Accounts receivable 1,930,254,991.70 2,310,254,576.98
Prepayments 145,479,231.32 89,477,823.29
Interest receivable 33,480,770.36 18,798,031.69
Dividends receivable
Other accounts receivable 19,024,712.35 16,176,106.89
Inventories 877,821,535.01 1,068,494,123.28
Assets held for sale
Non-current assets due within one year
Other current assets 6,234,037,625.21 4,965,682,855.69
Total current assets 11,169,119,776.32 11,954,871,227.95
Non-current assets:
Available-for-sale financial assets 150,000.00 150,000.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 1,375,785,041.57 1,375,785,041.57
Investment property 7,278,796.74 7,546,955.16
Fixed assets 508,168,069.13 490,047,802.72
Construction in progress 14,733,569.06
Engineering materials
Disposal of fixed assets
Productive living assets
Oil-gas assets
Wuxi Little Swan Company Limited Third Quarter Report 2017
Intangible assets 90,573,442.43 92,591,167.64
R&D expense
Goodwill
Long-term deferred expense 3,101,948.40 1,817,228.83
Deferred income tax assets 227,238,156.95 197,091,251.29
Other non-current assets 21,476,594.90 18,313,858.80
Total non-current assets 2,248,505,619.18 2,183,343,306.01
Total assets 13,417,625,395.50 14,138,214,533.96
Current liabilities:
Short-term borrowings 108,000,000.00 123,943,093.80
Financial liabilities at fair value through gains/losses
Derivative financial liabilities
Notes payable 1,779,185,570.99 1,508,017,904.49
Accounts payable 3,658,904,954.11 3,913,090,507.89
Advances received 665,096,569.85 1,854,711,663.46
Payroll payable 191,781,499.15 216,530,836.37
Taxes payable 265,352,704.80 249,034,768.38
Interest payable
Dividends payable 6,996,784.06 7,150,684.06
Other accounts payable 133,275,825.22 143,124,857.82
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities 1,390,609,601.77 1,173,641,937.69
Total current liabilities 8,199,203,509.95 9,189,246,253.96
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term payables
Long-term payroll payable
Special payables
Provisions
Deferred income
Wuxi Little Swan Company Limited Third Quarter Report 2017
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 8,199,203,509.95 9,189,246,253.96
Owners’ equity:
Share capital 632,487,764.00 632,487,764.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserve 1,385,109,598.55 1,350,656,531.65
Less: Treasury shares
Other comprehensive income 41,133,481.56 37,515,343.84
Special reserve
Surplus reserve 319,944,578.39 319,944,578.39
Retained earnings 2,839,746,463.05 2,608,364,062.12
Total owners’ equity 5,218,421,885.55 4,948,968,280.00
Total liabilities and owners’ equity 13,417,625,395.50 14,138,214,533.96
3. Consolidated Income Statement for July-September
Unit: RMB
Item July-September 2017 July-September 2016
1. Operating revenue 5,409,053,680.82 4,070,848,719.32
Including: Net sales 5,409,053,680.82 4,070,848,719.32
Interest revenue
Premium revenue
Fee and commission revenue
2. Operating expenses 4,915,302,618.03 3,669,637,983.51
Including: Cost of sales 4,025,713,025.98 3,016,876,202.80
Interest expense
Fee and commission expense
Surrenders
Net claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Wuxi Little Swan Company Limited Third Quarter Report 2017
Reinsurance premium expense
Taxes and surtaxes 33,914,345.16 17,636,853.40
Selling expense 702,045,545.50 539,563,649.92
Administrative expense 151,877,449.91 101,096,489.36
Finance costs -2,812,709.83 -30,617,265.06
Asset impairment losses 4,564,961.31 25,082,053.07
Add: Gains on fair value changes (“-” for losses) 2,361,168.20
Investment income (“-” for losses) 56,923,988.62 63,442,725.63
Including: Share of gains/losses of associates and joint ventures
Exchange gains (“-” for losses)
Other income 6,835,783.31
3. Operating margin (“-” for losses) 559,872,002.92 464,653,461.44
Add: Non-operating income 8,370,654.72 9,451,463.63
Including: Gains on disposal of non-current assets 42,043.69 20,217.78
Less: Non-operating expense 73,435.06 1,706,463.30
Including: Losses on disposal of non-current assets 42,435.06 371,314.11
4. Gross margin (“-” for losses) 568,169,222.58 472,398,461.77
Less: Income tax expense 87,620,162.08 72,828,206.62
5. Net margin (“-” for losses) 480,549,060.50 399,570,255.15
Attributable to owners of the parent 411,479,306.87 332,295,999.87
Attributable to minority interests 69,069,753.63 67,274,255.28
6. Other comprehensive income, net of tax 3,779,053.96 4,246,647.68
Other comprehensive income, net of tax attributable to owners
8,467,880.09 1,964,616.39
of the parent
6.1 Other comprehensive income that will not be reclassified
into gains/losses
6.1.1 Changes in net liabilities or assets with a defined
benefit plan upon re-measurement
6.1.2 Share of other comprehensive income of investees
that cannot be reclassified into gains/losses under equity method
6.2 Other comprehensive income to be subsequently
8,467,880.09 1,964,616.39
reclassified into gains/losses
6.2.1 Share of other comprehensive income of investees
that will be reclassified into gains/losses under equity method
6.2.2 Gains/Losses on fair value changes of
8,472,611.20 1,962,537.08
available-for-sale financial assets
6.2.3 Gains/Losses on reclassifying held-to-maturity
investments into available-for-sale financial assets
Wuxi Little Swan Company Limited Third Quarter Report 2017
6.2.4 Effective gains/losses on cash flow hedges
6.2.5 Currency translation differences -4,731.11 2,079.31
6.2.6 Other
Other comprehensive income, net of tax attributable to minority
-4,688,826.13 2,282,031.29
interests
7. Total comprehensive income 484,328,114.46 403,816,902.83
Attributable to owners of the parent 419,947,186.96 334,260,616.26
Attributable to minority interests 64,380,927.50 69,556,286.57
8. Earnings per share
8.1 Basic earnings per share 0.65 0.53
8.2 Diluted earnings per share 0.65 0.53
4. Parent Company Income Statement for July-September
Unit: RMB
Item July-September 2017 July-September 2016
1. Operating revenue 4,137,270,472.44 2,922,039,454.39
Less: Operating expenses 3,238,940,527.27 2,334,276,302.85
Taxes and surtaxes 21,653,606.79 12,900,966.92
Selling expense 492,184,783.36 335,708,432.38
Administrative expense 114,518,266.69 72,985,560.69
Finance costs -343,883.61 -20,072,180.35
Asset impairment losses 3,457,037.13 16,504,313.87
Add: Gains on fair value changes (“-” for losses) 2,204,741.62
Investment income (“-” for loss) 16,012,684.13 30,279,080.67
Including: Share of gains/losses of associates and joint ventures
Other income
2. Operating margin (“-” for losses) 285,077,560.56 200,015,138.70
Add: Non-operating income 4,425,956.50 3,387,007.20
Including: Gains on disposal of non-current assets 223,909.00
Less: Non-operating expense 674,514.67
Including: Losses on disposal of non-current assets 347,731.17
3. Gross margin (“-” for losses) 289,503,517.06 202,727,631.23
Less: Income tax expense 45,420,985.67 31,992,675.86
4. Net margin (“-” for losses) 244,082,531.39 170,734,955.37
Wuxi Little Swan Company Limited Third Quarter Report 2017
5. Other comprehensive income, net of tax 18,981,275.77 -3,229,072.28
5.1 Other comprehensive income that will not be reclassified into
gains and losses
5.1.1 Changes in net liabilities or assets with a defined benefit
plan upon re-measurement
5.1.2 Share of other comprehensive income of investees that
cannot be reclassified into gains/losses under equity method
5.2 Other comprehensive income to be subsequently reclassified
18,981,275.77 -3,229,072.28
into gains/losses
5.2.1 Share of other comprehensive income of investees that will
be reclassified into gains/losses under equity method
5.2.2 Gains/Losses on fair value changes of available-for-sale
18,981,275.77 -3,229,072.28
financial assets
5.2.3 Gains/Losses on reclassifying held-to-maturity investments
into available-for-sale financial assets
5.2.4 Effective gains/losses on cash flow hedges
5.2.5 Currency translation differences
5.2.6 Other
6. Total comprehensive income 263,063,807.16 167,505,883.09
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
5. Consolidated Income Statement for January-September
Unit: RMB
Item January-September 2017 January-September 2016
1. Operating revenue 15,977,114,535.05 12,055,635,914.24
Including: Net sales 15,977,114,535.05 12,055,635,914.24
Interest revenue
Premium revenue
Fee and commission revenue
2. Operating expenses 14,717,291,930.91 10,948,766,070.41
Including: Cost of sales 11,887,084,837.76 8,829,467,976.48
Interest expense
Fee and commission expense
Surrenders
Net claims paid
Wuxi Little Swan Company Limited Third Quarter Report 2017
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surtaxes 98,446,618.90 62,360,730.86
Selling expense 2,235,935,416.90 1,730,895,706.04
Administrative expense 480,040,555.32 367,042,544.04
Finance costs -26,335,907.67 -94,016,729.52
Asset impairment losses 42,120,409.70 53,015,842.51
Add: Gains on fair value changes (“-” for losses) 7,279,041.33
Investment income (“-” for losses) 238,589,870.73 130,758,204.67
Including: Share of gains/losses of associates and joint ventures
Exchange gains (“-” for losses)
Other income 22,642,337.07
3. Operating margin (“-” for losses) 1,528,333,853.27 1,237,628,048.50
Add: Non-operating income 23,994,408.02 30,937,449.39
Including: Gains on disposal of non-current assets 4,620,758.39 137,055.45
Less: Non-operating expense 3,153,092.92 3,941,368.67
Including: Losses on disposal of non-current assets 2,297,064.23 609,898.08
4. Gross margin (“-” for losses) 1,549,175,168.37 1,264,624,129.22
Less: Income tax expense 235,865,857.86 200,130,598.37
5. Net margin (“-” for losses) 1,313,309,310.51 1,064,493,530.85
Attributable to owners of the parent 1,143,019,809.34 913,122,562.45
Attributable to minority interests 170,289,501.17 151,370,968.40
6. Other comprehensive income, net of tax -28,637,223.77 40,511,423.04
Other comprehensive income, net of tax attributable to owners
-18,953,155.82 34,901,506.32
of the parent
6.1 Other comprehensive income that will not be reclassified
into gains/losses
6.1.1 Changes in net liabilities or assets with a defined
benefit plan upon re-measurement
6.1.2 Share of other comprehensive income of investees
that cannot be reclassified into gains/losses under equity method
6.2 Other comprehensive income to be subsequently
-18,953,155.82 34,901,506.32
reclassified into gains/losses
6.2.1 Share of other comprehensive income of investees
that will be reclassified into gains/losses under equity method
6.2.2 Gains/Losses on fair value changes of -18,941,998.21 34,892,633.31
Wuxi Little Swan Company Limited Third Quarter Report 2017
available-for-sale financial assets
6.2.3 Gains/Losses on reclassifying held-to-maturity
investments into available-for-sale financial assets
6.2.4 Effective gains/losses on cash flow hedges
6.2.5 Currency translation differences -11,157.61 8,873.01
6.2.6 Other
Other comprehensive income, net of tax attributable to minority
-9,684,067.95 5,609,916.72
interests
7. Total comprehensive income 1,284,672,086.74 1,105,004,953.89
Attributable to owners of the parent 1,124,066,653.52 948,024,068.77
Attributable to minority interests 160,605,433.22 156,980,885.12
8. Earnings per share
8.1 Basic earnings per share 1.81 1.44
8.2 Diluted earnings per share 1.81 1.44
6. Parent Company Income Statement for January-September
Unit: RMB
Item January-September 2017 January-September 2016
1. Operating revenue 11,896,493,564.73 8,967,860,546.46
Less: Operating expenses 9,234,940,559.84 6,859,231,278.20
Taxes and surtaxes 66,089,061.73 46,137,270.20
Selling expense 1,510,957,356.69 1,230,788,719.89
Administrative expense 384,653,787.00 282,209,180.40
Finance costs -28,382,799.86 -65,789,102.80
Asset impairment losses 18,602,355.25 38,000,316.38
Add: Gains on fair value changes (“-” for losses) 6,482,343.61
Investment income (“-” for loss) 109,372,200.95 47,585,175.04
Including: Share of gains/losses of associates and joint ventures
Other income
2. Operating margin (“-” for losses) 825,487,788.64 624,868,059.23
Add: Non-operating income 12,887,071.45 6,170,352.44
Including: Gains on disposal of non-current assets 323,481.65 99,572.65
Less: Non-operating expense 1,598,940.52 1,109,079.32
Including: Losses on disposal of non-current assets 234,891.28 582,622.45
3. Gross margin (“-” for losses) 836,775,919.57 629,929,332.35
Wuxi Little Swan Company Limited Third Quarter Report 2017
Less: Income tax expense 131,027,695.66 102,727,757.06
4. Net margin (“-” for losses) 705,748,223.91 527,201,575.29
5. Other comprehensive income, net of tax 3,618,137.72 22,110,741.45
5.1 Other comprehensive income that will not be reclassified into
gains and losses
5.1.1 Changes in net liabilities or assets with a defined benefit
plan upon re-measurement
5.1.2 Share of other comprehensive income of investees that
cannot be reclassified into gains/losses under equity method
5.2 Other comprehensive income to be subsequently reclassified
3,618,137.72 22,110,741.45
into gains/losses
5.2.1 Share of other comprehensive income of investees that will
be reclassified into gains/losses under equity method
5.2.2 Gains/Losses on fair value changes of available-for-sale
3,618,137.72 22,110,741.45
financial assets
5.2.3 Gains/Losses on reclassifying held-to-maturity investments
into available-for-sale financial assets
5.2.4 Effective gains/losses on cash flow hedges
5.2.5 Currency translation differences
5.2.6 Other
6. Total comprehensive income 709,366,361.63 549,312,316.74
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
7. Consolidated Cash Flow Statement for January-September
Unit: RMB
Item January-September 2017 January-September 2016
1. Cash generated by or used in operating activities:
Cash generated by sale of commodities and rendering of service 11,502,461,367.12 10,031,334,899.28
Net increase in money deposits from customers and interbank
placements
Net increase in loans from Central Bank
Net increase in funds borrowed from other financial institutions
Cash received as premiums of original insurance contracts
Net cash generated by reinsurance business
Net increase in deposits of policy holders and investment fund
Wuxi Little Swan Company Limited Third Quarter Report 2017
Net increase in disposal of financial assets at fair value through
gains/losses
Interest, fees and commissions received
Net increase in interbank borrowings
Net increase in funds in repurchase business
Tax rebates received 60,061,335.71 60,063,076.13
Cash generated by other operating activities 86,857,031.47 72,368,190.31
Subtotal of cash generated by operating activities 11,649,379,734.30 10,163,766,165.72
Cash paid for goods and services 7,437,740,147.06 5,404,416,316.25
Net increase in loans and advances to customers
Net increase in funds deposited in Central Bank and interbank
placements
Cash paid for claims of original insurance contracts
Interest, fees and commissions paid
Cash paid as policy dividends
Cash paid to and for employees 918,519,618.20 679,507,180.35
Taxes paid 634,889,870.55 640,844,887.26
Cash used in other operating activities 1,969,007,881.07 1,511,703,696.63
Subtotal of cash used in operating activities 10,960,157,516.88 8,236,472,080.49
Net cash from operating activities 689,222,217.42 1,927,294,085.23
2. Cash generated by or used in investing activities:
Cash generated by disinvestments 6,895,000,000.00 6,210,000,000.00
Cash received as investment income 238,758,884.14 130,758,204.67
Net cash generated by disposal of fixed assets, intangible assets
840,384.69 823,553.94
and other long-term assets
Net cash generated by disposal of subsidiaries or other business
2,415,000.00
units
Cash generated by other investing activities 57,042,308.02 48,649,720.52
Subtotal of cash generated by investing activities 7,194,056,576.85 6,390,231,479.13
Cash paid to acquire fixed assets, intangible assets and other
104,042,380.39 17,222,953.39
long-term assets
Cash paid for investments 8,545,000,000.00 8,756,000,000.00
Net increase in pledged loans
Net cash paid to acquire subsidiaries and other business units
Cash used in other investing activities
Subtotal of cash used in investing activities 8,649,042,380.39 8,773,222,953.39
Wuxi Little Swan Company Limited Third Quarter Report 2017
Net cash from investing activities -1,454,985,803.54 -2,382,991,474.26
3. Cash generated by or used in financing activities:
Cash received as capital contributions
Including: Cash received from minority shareholder investments
by subsidiaries
Cash received as borrowings 429,950,000.00
Cash generated by issuance of bonds
Cash generated by other financing activities
Subtotal of cash generated by financing activities 429,950,000.00
Repayment of borrowings 464,293,064.12
Cash paid for interest expenses and distribution of dividends or
499,516,450.57 376,001,781.77
profit
Including: dividends or profit paid by subsidiaries to minority
interests
Cash used in other financing activities
Sub-total of cash used in financing activities 963,809,514.69 376,001,781.77
Net cash from financing activities -533,859,514.69 -376,001,781.77
4. Effect of foreign exchange rate changes on cash and cash
equivalents
5. Net increase in cash and cash equivalents -1,299,623,100.81 -831,699,170.80
Add: Opening balance of cash and cash equivalents 4,171,689,917.21 2,792,685,328.69
6. Closing balance of cash and cash equivalents 2,872,066,816.40 1,960,986,157.89
8. Parent Company Cash Flow Statement for January-September
Unit: RMB
Item January-September 2017 January-September 2016
1. Cash generated by or used in operating activities:
Cash generated by sale of commodities and rendering of service 9,850,148,284.12 5,783,703,284.45
Tax rebates received
Cash generated by other operating activities 38,736,675.26 38,053,714.94
Subtotal of cash generated by operating activities 9,888,884,959.38 5,821,756,999.39
Cash paid for goods and services 6,852,988,102.23 3,722,465,740.78
Cash paid to and for employees 645,646,594.51 458,460,415.27
Taxes paid 370,064,700.60 449,874,162.78
Cash used in other operating activities 1,350,354,065.27 1,083,982,648.54
Subtotal of cash used in operating activities 9,219,053,462.61 5,714,782,967.37
Wuxi Little Swan Company Limited Third Quarter Report 2017
Net cash from operating activities 669,831,496.77 106,974,032.02
2. Cash generated by or used in investing activities:
Cash generated by disinvestments 3,185,000,000.00 3,685,000,000.00
Cash received as investment income 104,184,719.36 47,585,175.04
Net cash generated by disposal of fixed assets, intangible assets
192,710.01 791,986.33
and other long-term assets
Net cash generated by disposal of subsidiaries or other business
2,415,000.00
units
Cash generated by other investing activities 38,174,499.80 39,953,305.21
Subtotal of cash generated by investing activities 3,329,966,929.17 3,773,330,466.58
Cash paid to acquire fixed assets, intangible assets and other
46,670,938.80 5,841,421.83
long-term assets
Cash paid for investments 4,475,000,000.00 4,236,000,000.00
Net cash paid to acquire subsidiaries and other business units
Cash used in other investing activities
Subtotal of cash used in investing activities 4,521,670,938.80 4,241,841,421.83
Net cash from investing activities -1,191,704,009.63 -468,510,955.25
3. Cash generated by or used in financing activities:
Cash received as capital contributions
Cash received as borrowings 243,000,000.00
Cash generated by issuance of bonds
Cash generated by other financing activities
Subtotal of cash generated by financing activities 243,000,000.00
Repayment of borrowings 258,943,093.80 376,001,781.77
Cash paid for interest expenses and distribution of dividends or
492,786,139.87
profit
Cash used in other financing activities
Sub-total of cash used in financing activities 751,729,233.67 376,001,781.77
Net cash from financing activities -508,729,233.67 -376,001,781.77
4. Effect of foreign exchange rate changes on cash and cash
equivalents
5. Net increase in cash and cash equivalents -1,030,601,746.53 -737,538,705.00
Add: Opening balance of cash and cash equivalents 2,353,708,554.75 1,866,443,114.64
6. Closing balance of cash and cash equivalents 1,323,106,808.22 1,128,904,409.64
Wuxi Little Swan Company Limited Third Quarter Report 2017
II Auditor’s Report
Are the Q3 2017 financial statements audited?
□Yes √ No
These financial statements are unaudited.
Wuxi Little Swan Company Limited
Legal representative: Fang Hongbo
October 25, 2017
